The Ricardian Two- Country,two- Good Model Predicts That There Are

Multiple Choice

The Ricardian two- country,two- good model predicts that there are potential benefits from trade,but NOT

A) when one country has significantly lower wages than the other country.
B) when both countries have the same types of technology available.
C) the mechanism that determines which country will specialize in which good.
D) the effect of trade on income distribution.
E) when one country has an absolute advantage in the production of both goods.